HM Revenue and Customs (HMRC) has dispatched over 81,000 warning letters to cryptocurrency holders, reminding them they might owe capital gains tax. The number of letters sent since 2024 has almost tripled, showing a growing interest in crypto taxation.
Investors could face fines or even prosecution if they fail to declare profits from selling cryptocurrencies, even when exchanging one for another. Analysts predict that new HMRC powers, set to come into effect next year, will make it easier to target wealthy crypto investors. It’s like shooting fish in a barrel.
Between December 2022 and October 2025, the price of Bitcoin soared from around £14,000 to £90,000, leading HMRC to suspect large amounts of unpaid capital gains tax. Cryptocurrency platforms outside the UK will be required to share customer information with tax authorities starting in March 2027, ensuring crypto bros pay their fair share.
The tax office estimates that these changes could help raise up to £315m by April 2030—equivalent to funding more than 10,000 newly qualified nurses for a year. Accountants are urging investors to review their tax affairs now, as the upcoming rules will make it easier for HMRC to target individuals.
